A small distributor in Rio de Janeiro told SteelOrbis that he is now negotiating in the domestic market the CA-50 grade, 10mm thickness rebar at BRL2,173/mt ($583/mt), CFR full taxes conditions, a price reduced by 25 percent in one month.
The source mentioned that despite the drastic reduction, he was not able to increase sales, due to the poor demand from the civil construction sector.
Another distributor in the northeast, linked to a producer, said that he is maintaining BRL2,700/mt ($724/mt), CFR no taxes included, only PIS Cofins levies, stable over three months, for the same product, for delivery to clients in the central-western region, adding that in his view a drastic reduction of price would not lead to increased sales.
He mentioned that in volume his sales were reduced in October by 30 percent from October 2014.
A third source, a major distributor in the southeast, told SteelOrbis that he is aware that some small distributors are offering significant discounts, in the sale of long steel products, as an alternative to raise cash following a period of poor sales.
He added that despite the poor market conditions, he remains selling rebar at BRL3,289/mt ($886/mt), CFR full taxes, but conceded that discounts could be offer depending on conditions, chiefly those related to tonnages.
USD = BRL 3.71 (November 20)